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I have my car up on jacks right now with the wheels off and I was looking at the the front wheel hub, and it has three connections, one on the control arm, one on the rack and pinion, and then one on the strut, but it's just attached to the strut with a collar. Like the strut comes down as a 2-3" tube and then the hub just has a collar that tightens around it. So my question is is that adjustable so you can adjust your ride height or is that something that you shouldn't touch? Btw I have the sports package if that makes any difference.

Yeah I know that, but why is it a collar and not a more solid connection? Like I know I shouldn't touch it because it would probably throw off my handling but it looks like I could just loosen the collar and slide it up an inch, then retighten it. Is it like that so BMW could calibrate the suspension at the factory or something?

it doesn't mean anything. it's just where your strut sits.
if you raised your strut and tried to retighten it it wouldn't hold it. and it would be extremely unsafe. the strut actually has a little lip on it. so it's resting on the lip of the collar.
don't touch it.

Yeah I know that, but why is it a collar and not a more solid connection? Like I know I shouldn't touch it because it would probably throw off my handling but it looks like I could just loosen the collar and slide it up an inch, then retighten it. Is it like that so BMW could calibrate the suspension at the factory or something?

The strut only goes into the collar one depth, and that is controlled by a tiny tip on the side of the strut that won't slide into the collar any more.
And this depth does not control ride height. Shocks don't hold the car in the position it sits. The springs do that.
If you were to be able to adjust the collar up or down, the ride height would not change. But you'd be messing with the travel extremes of the shock, and potentially set things up to do permanent damage to the shocks (struts).

The strut only goes into the collar one depth, and that is controlled by a tiny tip on the side of the strut that won't slide into the collar any more.
And this depth does not control ride height. Shocks don't hold the car in the position it sits. The springs do that.
If you were to be able to adjust the collar up or down, the ride height would not change. But you'd be messing with the travel extremes of the shock, and potentially set things up to do permanent damage to the shocks (struts).

I experimented with this for a night or so. What I found was, the two little "nipples" on the strut body are primarily used to orientate the strut to the right geometric location, in reference to the sway bar end links to keep them parallel with the strut. If you were to raise the strut up far enough out to allow the nipples to be out of the collar the strut would twist , causing the sway bar end link to be out of geometric alignment, causing things that should not touch to touch or to bind. I knocked off the two nipples, on an old strut and it had no effect on where the strut set in the collar. I did not put a micrometer or measure the interior diameter of the collar from top to bottom, but I am pretty sure it is tapered along with the bottom of the strut to allow it only to go so far. I am sure if you could lower the strut into the collar at your own desired level, every one would be subscribing to a post about "how the lower control arm was destroyed", when the strut bottomed out onto the lower control arm during travel of suspension. Just my observation.